Chevron Announces First Gas at U.K. Alder Field

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ABERDEEN, Scotland--(BUSINESS WIRE)--Chevron North Sea Limited today announced it has started production at
Alder, a high-pressure, high-temperature (HPHT) gas condensate field in
the Central North Sea.

"First gas at Alder represents a significant milestone for Chevron and
highlights our commitment to investing and developing resources in the
U.K.,” said Greta Lydecker, managing director, Chevron Upstream Europe.
“The safe and successful completion of this project was underpinned by
strong collaboration between Chevron and Alder co-venturer
ConocoPhillips. Alder supports our goal of helping maximize the economic
recovery of the U.K., adds significant production to our portfolio, and
helps extend the field life of Britannia, an important asset to Chevron
in the North Sea.”

Andy Samuel, chief executive at The Oil and Gas Authority, said: “We are
very pleased to see the safe flow of first gas from the Alder Field.
Chevron’s application of innovative subsea technologies and use of the
U.K.’s experienced supply chain is closely aligned to the Maximising
Economic Recovery Strategy, adding reserves and extending the life of an
existing asset.”

Alder is a single subsea well tied back, via a 28 kilometer pipeline, to
the existing ConocoPhillips-operated Britannia Platform, in which
Chevron holds a 32.38 percent non-operated working interest. The project
has a planned design capacity of 110 million cubic feet of natural gas
and 14,000 barrels of condensate per day. Production from the HPHT Alder
Field is expected to ramp up over the coming months.

More than 70 percent of the Alder development work was executed by U.K.
based companies, providing significant investment to the U.K. supply
chain. The contracts supported several hundred jobs across a range of
U.K. locations including Aberdeen, Invergordon, Leeds and Newcastle.

Discovered in 1975, the development has been enabled through the
application of innovative subsea technologies designed to meet the
temperature and pressure challenges of Alder. Key technologies have
included a number of firsts for Chevron in the North Sea, including a
vertical mono-bore subsea tree system; a subsea high integrity pressure
protection system (HIPPS); and a specially designed corrosion monitoring
system to measure the real-time condition of the production pipeline.

Chevron Upstream Europe (CUE) is a strategic business unit of Chevron’s
Europe, Eurasia and Middle East (EEME) Operating Company, and is
headquartered in Aberdeen, Scotland. CUE manages the company’s upstream
exploration and production interests in Denmark, Greenland, Norway and
the United Kingdom. Chevron currently has over 800 upstream staff and
contractors across its European operations, including the Global
Technology Centre (GTC) in Aberdeen.

In the United Kingdom, Chevron North Sea Limited (CNSL) has working
interests in 10 offshore producing fields, including three operated
fields (Alba, 23.4 percent; Captain, 85 percent; and Erskine, 50
percent) and seven non-operated fields (Britannia, 32.4 percent;
Brodgar, 25 percent; Callanish, 16.5 percent; Clair, 19.4 percent;
Elgin/Franklin, 3.9 percent; Enochdhu, 50 percent; and Jade, 19.9
percent). CNSL’s net daily production in 2015 from these fields averaged
40,000 barrels of liquids and 115 million cubic feet of natural gas.
More information about Chevron in the UK is available at www.chevronunitedkingdom.com

Notes to editors:

The Alder Field was discovered in 1975.

Alder is a high-pressure; high-temperature (HPHT) gas condensate field
located around 100 miles (160 km) from the Scottish coastline in the
Central North Sea, in water depths of approximately 492 feet (150 m).

Alder is a single subsea well tied back to the existing Britannia
Bridge Linked Platform (BLP) via a 17.4 mile (28 km) production
flowline.

Alder produced fluids are processed at a dedicated module attached to
the Britannia BLP. Alder condensate will be exported via the Forties
Pipeline System to Grangemouth terminal and gas exported to the
Scottish Area Gas Evacuation terminal at St Fergus, near Peterhead,
Scotland.

The project has a design capacity of 14,000 barrels of condensate and
110 million cubic feet of natural gas per day.

Alder brings a new stream of production to Chevron and the U.K. while
helping to extend
the field life of Britannia.

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